The share of franchise restaurants in the Sfinks Polska network increased to 93.3% at the end of the first quarter of 2025, up from 80% a year earlier. Locations managed by the gastronomic company, including SPHINX Restaurants, The Burgers by SPHINX, and Chłopskie Jadło, generated gastronomic revenues of PLN 50.31 million in Q1 2025, representing a 6% year-on-year increase. Consolidated revenues from January to March amounted to PLN 12.78 million, compared to PLN 21.05 million a year earlier, reflecting ongoing conversions of company-owned restaurants into franchise operations. As a result, the group ceased consolidating revenues and costs of these restaurants within the group. Despite lower consolidated revenues, Sfinks recorded a comparable gross profit on sales of PLN 6 million at the end of Q1 2025 versus PLN 6.1 million at the end of Q1 2024.
“In the first quarter of this year, we continued the transformation towards franchising, in line with the company’s strategic announcements. By the time of this report’s publication in 2025, three more company-owned locations transitioned to franchisees, bringing the total to 16 restaurants. By the end of the year, several more restaurants will undergo similar changes. Transforming such a significant number of locations impacts the profit and loss statement and balance sheet, complicating year-on-year comparisons; this situation will persist for several more quarters. However, we are decisively moving towards a head office model that manages the network, optimizes its functioning, and develops the gastronomic brands. Importantly, restaurant turnovers are growing, with nearly 97% of revenues coming from SPHINX restaurants, and the group’s gross sales profitability increasing from 29% at the end of March 2024 to 47% at the end of Q1 2025,” said Sylwester Cacek, CEO of Sfinks Polska.
The transformation from company-owned to franchise restaurants not only changes the group’s accounting of revenues and costs but also temporarily affects restaurant operations. For example, franchisees may await new alcohol sale licenses, undergo team changes, and onboard new staff. As a result, turnovers in these restaurants during the transition period are lower than their potential, impacting franchise fees paid to the head office. This effect, combined with a large number of conversions within a short timeframe, is reflected in the group’s revenues and results, especially as Sfinks’ results are burdened by debt financing obligations. Given all these factors, the consolidated net result stood at a loss of PLN 2.02 million at the end of Q1 2025 (compared to a PLN 0.23 million profit a year earlier), while EBITDA amounted to PLN 1.78 million (down from PLN 6.1 million the previous year).
“Ultimately, the situation in the converted restaurants will normalize, and these locations will operate more efficiently, positively affecting franchise fees and company revenues. All these restaurants will increasingly benefit from central marketing support and sales growth opportunities provided by the Aperitif loyalty program. The number of users taking advantage of special offers available through this mobile app continues to grow. There is also strong interest in the Aperitif Smart program, introduced to celebrate the 30th anniversary of the SPHINX brand, which offers a 30% discount in restaurants and increases the frequency of customer visits,” said Sfinks’ CEO.
In Q1, Sfinks Polska also welcomed a new SPHINX restaurant, opened in March in a shopping park in Lubin, Lower Silesia. Another new SPHINX restaurant began operations in May near the old town market in Jarocin. Both are run by franchisees. Work is underway to open more restaurants, including in the Tricity area.
Another new initiative launched by Sfinks in Q2 2025 is SPHINX Box, marking the company’s entry into the fast-growing diet catering market. SPHINX Box offers balanced meals combining the flavors known from the flagship SPHINX chain. The offer is available to residents of over four thousand locations across Poland.
Gastronomic revenues encompass revenues from all locations operating under brands owned by Sfinks Polska Group, excluding the Piwiarnia chain.
